Bipartisan Effort for Flexible Hydrogen Project Development Rules
Key Ideas
  • Congresswomen DelBene and Schrier advocate for flexibility in Clean Hydrogen Production Tax Credit rules to prevent hindrance to hydrogen economy development.
  • Proposed federal regulations could lead to the loss of half of Hydrogen Hub projects, cancel private sector investments, and cost high-paying jobs.
  • Call for nuanced, regionally-flexible approach, recognition of clean energy resources, and gradual implementation of stricter standards to support effective industry scaling.
  • The Pacific Northwest designated as a clean hydrogen hub with significant federal investment, showcasing the commitment to hydrogen development.
Congresswomen Suzan DelBene and Kim Schrier, along with 12 House Members, are urging the Biden administration to introduce flexibility in the implementation of the Clean Hydrogen Production Tax Credit rules. They argue that the current proposed regulations could impede the growth of the hydrogen economy by potentially causing the loss of numerous Hydrogen Hub projects nationwide, leading to canceled investments and job losses. The lawmakers emphasize the need for a more nuanced and regionally-flexible approach that considers existing clean energy policies and allows for the recognition of clean energy resources in hydrogen production. Specific changes recommended in the letter to the Treasury Department include providing flexibility in incrementality requirements, recognizing the value of clean energy resources like hydropower and nuclear energy, enabling a gradual implementation of stricter standards, and considering regional variations in renewable energy availability when setting compliance requirements. DelBene and Schrier played a key role in securing the designation of the Pacific Northwest as a clean hydrogen hub under the bipartisan infrastructure law. The recent announcement of a significant federal investment in the PNWH2 further underscores the importance of supporting hydrogen development. The bipartisan effort aims to ensure that federal regulations do not hinder the progress of the hydrogen economy, highlighting the commitment to creating a sustainable and job-rich industry.
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